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DAILY NEWS AND INFORMATION
FOR THE GLOBAL GRID COMMUNITY / SEPTEMBER 1, 2003; VOL. 2 NO. 35
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Systems/Enterprise:
CA'S KUMAR SEES UTILITY COMPUTING
AS KEY TO BIZ SUCCESS
Computer Associates International Inc (CA) Chairman and CEO Sanjay Kumar
told shareholders at its 2003 Annual Meeting that while customers continue to
be conservative in their technology spending, they will make purchases if they
see a concrete return on investment.
"Customers don't want point solutions from a variety of vendors," Kumar
said.
"They want a suite of products that are fully integrated and easily upgraded.
They are looking for innovative solutions that span platforms and operating
systems and make complex tasks simpler. Simply put, our customers are
demanding solutions of greater scope and versatility."
The CA chairman said the fundamental shift in the enterprise software
business
driven by on-demand computing plays into CA's strength as a management
software provider.
"On-demand computing is a vision of a future in which businesses access
computing capability in the same way they access a utility," Kumar said. "This
approach addresses three customer concerns -- responsiveness, efficiency and
cost. We believe the key to on-demand computing is management software --
software that allows customers to better manage and integrate their resources.
As the market evolves, we plan to further apply our core enterprise, security
and storage management strengths to pursue the next phase of on-demand
computing."
Kumar also maintained that CA's business model -- which gives both CA and
customers more flexibility in establishing contract terms and conditions --
clearly puts customers at the center of all the company does. He stressed that
it is a competitive advantage for CA. "IT providers need to recognize that the
future of this business lies in serving customers, in building partnerships
and in adding value beyond the software," he said.
In terming fiscal year 2004 a "very exciting year for CA and one of great
opportunity," Kumar said CA will focus its energies and resources on providing
superb service to customers and on building value for shareholders.
"2004 is sure to offer us many challenges and opportunities," Kumar said.
"We'll succeed by continuing to follow a simple formula: Offer the software
industry's most comprehensive and innovative enterprise management solutions;
leverage a business model that makes it easer for customers to license,
install and run our software; and, foster a culture that puts customers at the
center of everything we do."
Kumar reaffirmed CA's commitment to being the industry's "gold standard" in
corporate governance. Over the past year, CA has adopted new policies and
strengthened the composition of the Board of Directors to achieve that goal.
The policies are designed to ensure the strongest possible board oversight and
the tightest alignment with shareholder interests.
"For an IT company to succeed in the 21st century, customer focus is
essential, and so is good corporate governance," Kumar said. "After the
economic turmoil of the past several years, customers and investors want to
know that the companies with whom they are dealing adhere to the highest
standards of conduct. Restoring confidence in American business is a top
priority of every responsible business leader."
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